What is nba escrow?

NBA escrow is a system put in place by the NBA Players Association (NBAPA) to ensure that players and owners fairly share league revenues according to the Collective Bargaining Agreement (CBA). Under the current CBA, a portion of player salaries is held in escrow to ensure that the players do not receive more than their specified share of basketball-related income (BRI).

The percentage of player salaries that is held in escrow is determined by the CBA and can vary from year to year based on league revenues. If the players receive more than their designated share of BRI, the excess amount is withheld and used to balance the revenue distribution in the next season.

Escrow can sometimes lead to players receiving less than their full salary initially, but they may receive a refund if the revenues exceed expectations. Escrow is a key component of the NBA's revenue-sharing system and helps to ensure that both players and owners benefit from the financial success of the league.